The Economic Importance of Food and Fiber A Spotlight on Gilmer County, Georgia Prepared for Gilmer County Cooperative Extension July, 2012 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Trends in Gilmer County: Number of Farms Number of Farms, Gilmer County 500 400 300 200 100 0 1978 1982 1987 1992 Source: 1978-2007 (quinquennial) Censuses of Agriculture 1997 2002 2007 Trends in Gilmer County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Gilmer County Percent of Farms by Size, 2007 Gilmer Co. 50 40000 Land in farms Georgia Harvested cropland 40 35000 30000 30 25000 20000 20 15000 10000 10 5000 0 1992 1997 2002 2007 0 1-9 acres Source: 1992-2007 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Food and Fiber Production and Directly Related Manufacturing as % of Total Economic Output 0 - 10% 11 - 20% 21 - 30% 31 - 50% 51 – 77% Agriculture in Georgia Georgia's 2010 Farm Gate Value was $12.0 billion. Adding the value of $2.2 billion of landscape services increased the total agricultural production value to $14.2 billion. Total food and fiber production and directly related businesses account for a $68.9 billion output impact on Georgia's $719.8 billion economy. Production Agriculture: 2010 Dade Catoosa Towns Fannin Whitfield Walker Gilmer White Lumpkin Ha Gordon Chattooga be rs ha m Stephens Pickens Dawson Cherokee Bartow Franklin Banks Hall Floyd Jackson Polk Barrow Gwinnett Cobb Paulding Madison Oglethorpe ck da le Fulton Lincoln Wilkes Walton DeKalb Douglas Elbert Clarke Oconee Haralson Hart Forsyth Ro Georgia Total Agricultural Production Value $14.2 Billion Rabun Union Murray Clayton Carroll Morgan Newton Fayette Taliaferro Columbia McDuffie Warren Coweta Heard Pike Hancock Lamar Meriwether Richmond Putnam Jasper Butts Spalding Troup Greene Henry Glascock Baldwin Burke Jefferson Jones Monroe Washington Upson Bibb Wilkinson Jenkins Crawford Talbot Twiggs Emanuel Peach Taylor ch ee Muscogee Bulloch Pulaski Schley Dodge Dooly Wheeler Stewart Webster Sumter Evans Toombs Bryan Tattnall Chatham Wilcox Telfair Crisp Quitman $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $475 Liberty Randolph Terrell Lee Jeff Davis Ben Hill Long Appling Turner Irwin Clay Dougherty Calhoun Worth Coffee Wayne Bacon McIntosh Tift Early Pierce Baker Berrien Mitchell Miller Atkinson Brantley Colquitt Cook Glynn Ware Lanier Seminole Decatur Grady Clinch Thomas Brooks Lowndes Echols 2010 Farm Gate Value by County in Millions of Dollars Effingham ery oo Candler Treutlen Macon Ch at ta h Laurens Bleckley Houston Marion Screven Johnson Montgom Harris Camden Charlton What We Know about Gilmer County 2010 Farm Gate Value in Gilmer Co. was $200 million. Adding $4.6 million of landscape services increased the total agricultural production value to $204.6 million. The highest value commodity group was poultry and eggs, representing 94.2% of the total agricultural production value. Gilmer County 2010 Agricultural Production Value Fruits-NutsVegetables 2.0% Other 0.6% Ornamental Horticulture 0.3% Forestry 0.2% Livestock 2.0% Row-Forage crops 0.7% Poultry-Egg 94.2% What We Did County Economy Modeled The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. How much of the county’s total current economic output comes from food and fiber production and directly related processing? (A Snapshot of the Economy) What is the total (direct and indirect) Impact of food and fiber production and directly related industries? Gilmer County Economy Agriculture OUTPUT Output in $ Agriculture Percent 204,629,928 12.02% 19,223,668 1.13% Construction 121,942,781 7.16% Manufacturing 484,701,922 28.47% Trans-Utilities-Info 167,924,772 9.86% Trade 102,336,305 6.01% Finance-Ins-RE 275,176,501 16.16% Services 227,593,855 13.37% Mining Govt. & non-NAICS 99,048,990 Total County Economic Output = $1,702.6 million 5.82% Gilmer County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Agriculture + Direct Percent 494,545,767 29.05% 19,223,668 1.13% Construction 121,942,781 7.16% Manufacturing 194,786,083 11.44% Trans-Utilities-Info 167,924,772 9.86% Trade 102,336,305 6.01% Finance-Ins-Real Est 275,176,501 16.16% Services 227,593,855 13.37% Mining Govt. & non-NAICS 99,048,990 Total County Economic Output = $ 1,702.6 million 5.82% Gilmer County Employment Total Jobs = 12,713 Mining 81 0.6% Construction 1240 9.8% Manufacturing 632 5.0% AG + Directly Related 1,819 14.3% Trade 1,662 13.1% State & Federal Government 854 6.7% Public Education 727 5.7% Trans-UtilitiesInfo 612 4.8% Finance-Ins- Real Est 1196 9.4% Other Services 2,742 21.6% Professional Services 1,149 9.0% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Gilmer County How much of Gilmer County’s total economic output comes from food and fiber production? AG value alone of $204.6 million consisting of Farm Gate Value and landscape services comprises 12.0% of the county’s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 29.0% of the county’s economy. What is the Impact? What is the total (direct and indirect) impact of food and fiber production and directly related industries? This scenario illustrates how other industries are affected by the presence of food and fiber in the county. The indirect impacts measure output created due to food and fiber production and processing in the county. What Impact Means: A Brief Explanation The impact numbers capture the ripple effects that food and fiber create in the county’s economy. Many other sectors rely in part on the existence of food and fiber for sales. Labor Seed Utilities Gilmer County Agriculture IMPACT Direct $ Agriculture Indirect $ 204,629,928 0 Mining 0 1,243 Construction 0 1,854,170 Manufacturing 0 281,203 Trans-Utilities-Info 0 9,007,407 Trade 0 3,827,256 Finance-Ins-Real Est 0 10,439,169 Services 0 8,918,939 Govt. & non-NAICS 0 1,023,027 Total 204,629,928 35,352,414 Total Impact of Production AG = $240.0 million 14.1% of total economy Gilmer County Production Agriculture + Directly Related Businesses IMPACT Direct $ Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Govt. & non-NAICS Total 494,545,767 0 0 0 0 0 0 0 0 494,545,767 Indirect $ 0 1,968 4,050,036 579,172 25,047,304 9,457,085 30,606,180 28,555,625 3,185,570 101,482,940 Total Impact of AG + Directly Related = $596.0 million 35.0 % of total economy Gilmer County Production Agriculture + Directly Related Industries Employment IMPACT Direct Agriculture + Direct Indirect 1,819 0 Mining 0 0 Construction 0 47 Manufacturing 0 2 Trans-Utilities-Info 0 178 Trade 0 153 Finance-Ins-Real Est 0 120 Services 0 482 Govt. & non-NAICS 0 15 Total Impact of AG + Directly Related Employment = 2,817 Jobs 22.2% of total employment What These Numbers Mean: A Brief Explanation Direct impact is $494.5 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from the related sectors is $101.5 million. This captures the effects of farmers (direct source) buying supplies (seed, fertilizer, work boots) from local stores. These stores must increase their output to meet farmer demand. What These Numbers Mean: A Brief Explanation (continued) As local stores increase their output, they may demand more stock from local wholesalers (also in the Trade sector). Local wholesalers demand more from local manufacturers, thus increasing activity in the Manufacturing sector. Local stores also hire employees to assist farmers. They take home wages and buy groceries at the local store which increases demand there. Gilmer County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is $596.0 million. The total county output is $1,702.6 million. Thus, food and fiber (directly and indirectly) account for 35.0% of the total county output, considering the multiplier effects. Contact Information Prepared by: Sharon P. Kane and Karen Stubbs Center for Agribusiness & Economic Development Dr. Kent Wolfe, Director “Adding Value to Georgia's Agricultural Economy Through Research and Extension“ To learn more about your county, go to: http://www.caed.uga.edu/ ...click on “Resources”, then “Georgia Statistics System” Ag Profile Report AP#12-11A